Prompt Caching in Practice: The 5-Minute Cache and Workflow Design

Prompt caching is a technique for optimizing AI workflows by storing responses to reduce latency and cost. Effective caching involves managing cache lifetimes, refresh cycles, and invalidation strategies to maximize efficiency without sacrificing accuracy. Fine-tuning the cache expiration boundary based on prompt variability and response freshness is essential. Caching can reduce input costs by up to 90 percent compared to full input costs. Engineers should design robust cache refresh cycles using techniques like jitter and heartbeat mechanisms.